Zeev's Turnips Patch-No Politics (ZEEV)

[JimWillieCB]

watching Wayne Angell on CNBC, he is a total idiot
he said...

"the Fed has a great deal of ammunition left"
oh really, now at 1.25% on FedFunds, how is that?

"monetary policy always works, and when the Fed uses it, pricing power always emerges"
oh really, as in creating a bubble, then busting it?
and now seeing an economy slipping into recession after 11 cuts?
pricing power? sorry, none seen, esp with Asia on the scene

"the market wants real money, and that is what the Fed is all about"
oh really, you mean the unbacked dollar and a federal debt of $6.2 trillion?

and "the Fed needs to see the TENS yield down so low that people shun the bonds in favor of taking risks"
right
except now the growth is not there for lower rates to succeed

economic stupidity will carry with it a heavy price
Angell is but a link in the Economic Stupidity chain

the Dow was even at the announcement
it went slowly up to +60, later -80
now at +15

I will be watching the dollar, which now is a full 2% below the German shorterm rate

I expect the USdollar to slip until it breaks below 105
/ jim